Question 1

In the United States, banks are regulated by the Financial Services Authority (FSA).

Accepted Answer

A) True 
 B)False  False

Question 2

Explain the legislative, executive, and judicial powers delegated to administrative agencies through enabling legislation.

Accepted Answer

The U.S. Congress creates federal administrative agencies through statutes called enabling legislation. In general, an enabling statute delegates to the agency congressional legislative power for the purpose of serving the "public interest, convenience, and necessity." Armed with this mandate, the administrative agency can issue rules that control individual and business behavior. In many instances, such rules carry criminal as well as civil penalties. The enabling statute also delegates executive power to the agency to investigate potential violations of rules or statutes. Finally, the enabling statutes delegate judicial power to the agency to settle or adjudicate any disputes it may have with businesses or individuals. For example, the Securities and Exchange Commission (SEC), using its congressional mandate under the 1933 and 1934 Securities Acts, has prescribed rules governing the issuance of, and trading in, securities by businesses as well as by brokers and underwriters. Administrative law judges assigned to the SEC adjudicate cases in which individuals or corporations may have violated the rules.

Question 3

A formal rulemaking by an administrative agency is appropriate when an agency's enabling legislation .

Accepted Answer

A)  or other congressional directives do not require another form 
B)  states that all rules must be enacted by the agency as part of a formal hearing process that includes a complete transcript 
C)  or other congressional directives state that the agency must promulgate regulations 
D)  provides an opportunity for all interested parties to submit written comments 
A)  or other congressional directives do not require another form 
B)  states that all rules must be enacted by the agency as part of a formal hearing process that includes a complete transcript 
C)  or other congressional directives state that the agency must promulgate regulations 
D)  provides an opportunity for all interested parties to submit written comments B

Question 4

The National Labor Relations Board (NLRB) is informed that Verdure Industries, a candle manufacturer, is violating a few labor laws of the United States. What steps should the NLRB take in this case?

Accepted Answer

In carrying out its adjudicative functio

Question 5

The authority of administrative agencies is limited by the legislative branch through the power of the .

Accepted Answer

A)  U.S. Congress to terminate an agency 
B)  U.S. Congress to appoint administrative law judges 
C)  U.S. president to remove the heads of the agencies 
D)  Office of Management and Budget to recommend a fiscal-year budget for each agency 
A)  U.S. Congress to terminate an agency 
B)  U.S. Congress to appoint administrative law judges 
C)  U.S. president to remove the heads of the agencies 
D)  Office of Management and Budget to recommend a fiscal-year budget for each agency

Question 6

Which of the following refers to the power delegated by the U.S. Congress to an administrative agency to investigate whether the rules enacted by the agency have been properly followed by businesses and individuals?

Accepted Answer

A)  executive power 
B)  fiduciary power 
C)  legislative power 
D)  judicial power 
A)  executive power 
B)  fiduciary power 
C)  legislative power 
D)  judicial power

Question 7

Which of the following statements is true about administrative law judges?

Accepted Answer

A)  They can serve for a period of up to 10 years. 
B)  They usually come from within the federal administrative bureaucracy. 
C)  They are appointed by the U.S. Supreme Court. 
D)  They are appointed by governors in the respective states and confirmed by the Senate. 
A)  They can serve for a period of up to 10 years. 
B)  They usually come from within the federal administrative bureaucracy. 
C)  They are appointed by the U.S. Supreme Court. 
D)  They are appointed by governors in the respective states and confirmed by the Senate.

Question 8

Which of the following refers to the power delegated by the U.S. Congress to an administrative agency to adjudicate cases through an administrative proceeding?

Accepted Answer

A)  executive power 
B)  fiduciary power 
C)  legislative power 
D)  judicial power 
A)  executive power 
B)  fiduciary power 
C)  legislative power 
D)  judicial power

Question 9

Agency heads and commissions are required to defer to an administrative law judge's factual findings.

Accepted Answer

A) True 
 B)False

Question 10

Explain the reasons for the rapid growth of administrative agencies in the United States.

Accepted Answer

Administrative agencies have proliferate

Question 11

Which of the following best defines a preponderance of the evidence?

Accepted Answer

A)  It is a legal standard which transfers the right to adjudicate to a Supreme Court judge. 
B)  It is a legal standard that places the burden of proving the facts of the case on one party. 
C)  It is a legal standard whereby the evidence is in favor of one party. 
D)  It is a legal standard whereby a bare majority of the evidence is sufficient to justify a ruling. 
A)  It is a legal standard which transfers the right to adjudicate to a Supreme Court judge. 
B)  It is a legal standard that places the burden of proving the facts of the case on one party. 
C)  It is a legal standard whereby the evidence is in favor of one party. 
D)  It is a legal standard whereby a bare majority of the evidence is sufficient to justify a ruling.

Question 12

The wide-ranging investigative powers of Securities and Exchange Commission (SEC) staff is an example of the SEC's power.

Accepted Answer

A)  judicial 
B)  legislative 
C)  executive 
D)  fiat 
A)  judicial 
B)  legislative 
C)  executive 
D)  fiat

Question 13

Which of the following statements is true of the Financial Services Authority (FSA) of the United Kingdom?

Accepted Answer

A)  It is a governmental body whose board of directors is appointed by the president. 
B)  It oversees transactions and demands ethical and legal conduct from firms. 
C)  It utilizes government funding that must be approved by the British Parliament. 
D)  It has to coordinate with other governmental bodies to regulate trading exchanges. 
A)  It is a governmental body whose board of directors is appointed by the president. 
B)  It oversees transactions and demands ethical and legal conduct from firms. 
C)  It utilizes government funding that must be approved by the British Parliament. 
D)  It has to coordinate with other governmental bodies to regulate trading exchanges.

Question 14

Explain how the power of administrative agencies is limited by the executive branch of the government.

Accepted Answer

The power of administrative agencies is

Question 15

Functions of administrative agencies include all but which of the following?

Accepted Answer

A)  rulemaking 
B)  mediation of private disputes 
C)  informal advising of individual businesses and consumers 
D)  issuance of guidelines for the business community and others as to what activities are legal in the eyes of agency staff 
A)  rulemaking 
B)  mediation of private disputes 
C)  informal advising of individual businesses and consumers 
D)  issuance of guidelines for the business community and others as to what activities are legal in the eyes of agency staff

Question 16

Agencies are exempted from holding open hearings when proceedings concern military matters or foreign affairs.

Accepted Answer

A) True 
 B)False

Question 17

A consent order is .

Accepted Answer

A)  an agreement on the part of a company to accept a particular administrative action or remedy imposed by an agency, after having admitted guilt 
B)  a court order issued by a federal district court requiring that a business cease to engage in a particular behavior 
C)  an agreement by a business to stop an activity an administrative agency alleges to be unlawful and to accept the remedy the agency imposes, without having to accept guilt 
D)  a court order issued by a federal appellate court ordering a federal district court to supervise an administrative agency's behavior 
A)  an agreement on the part of a company to accept a particular administrative action or remedy imposed by an agency, after having admitted guilt 
B)  a court order issued by a federal district court requiring that a business cease to engage in a particular behavior 
C)  an agreement by a business to stop an activity an administrative agency alleges to be unlawful and to accept the remedy the agency imposes, without having to accept guilt 
D)  a court order issued by a federal appellate court ordering a federal district court to supervise an administrative agency's behavior

Question 18

A rule that governs the internal processes of an administrative agency is called a(n) .

Accepted Answer

A)  substantive rule 
B)  internal law 
C)  procedural rule 
D)  executive law 
A)  substantive rule 
B)  internal law 
C)  procedural rule 
D)  executive law

Question 19

In what decade did the Administrative Procedure Act become law?

Accepted Answer

A)  1920s 
B)  1930s 
C)  1940s 
D)  1960s 
A)  1920s 
B)  1930s 
C)  1940s 
D)  1960s

Question 20

Preponderance of the evidence is a legal standard whereby a bare majority of the evidence is sufficient to justify a ruling.

Accepted Answer

A) True 
 B)False

Exam 18: The Law of Administrative Agencies

In the United States, banks are regulated by the Financial Services Authority (FSA).

Explain the legislative, executive, and judicial powers delegated to administrative agencies through enabling legislation.

A formal rulemaking by an administrative agency is appropriate when an agency's enabling legislation .

The National Labor Relations Board (NLRB) is informed that Verdure Industries, a candle manufacturer, is violating a few labor laws of the United States. What steps should the NLRB take in this case?

The authority of administrative agencies is limited by the legislative branch through the power of the .

Which of the following refers to the power delegated by the U.S. Congress to an administrative agency to investigate whether the rules enacted by the agency have been properly followed by businesses and individuals?

Which of the following statements is true about administrative law judges?

Which of the following refers to the power delegated by the U.S. Congress to an administrative agency to adjudicate cases through an administrative proceeding?

Agency heads and commissions are required to defer to an administrative law judge's factual findings.

Explain the reasons for the rapid growth of administrative agencies in the United States.

Which of the following best defines a preponderance of the evidence?

The wide-ranging investigative powers of Securities and Exchange Commission (SEC) staff is an example of the SEC's power.

Which of the following statements is true of the Financial Services Authority (FSA) of the United Kingdom?

Explain how the power of administrative agencies is limited by the executive branch of the government.

Functions of administrative agencies include all but which of the following?

Agencies are exempted from holding open hearings when proceedings concern military matters or foreign affairs.

A consent order is .

A rule that governs the internal processes of an administrative agency is called a(n) .

In what decade did the Administrative Procedure Act become law?

Preponderance of the evidence is a legal standard whereby a bare majority of the evidence is sufficient to justify a ruling.

Critical Thinking and Legal Reasoning

Introduction to Law and the Legal Environment of Business

The American Legal System

Alternative Tools of Dispute Resolution

Constitutional Principles

White-Collar Crime and the Business Community

Ethics, Social Responsibility, and the Business Manager

The International Legal Environment of Business

The Law of Contracts and Sales I

The Law of Contracts and Sales Ii

The Law of Torts

Product and Service Liability Law

Law of Property: Real and Personal

Intellectual Property

Agency Law

Law and Business Associations I

Law and Business Associations II

The Employment Relationship and Immigration Laws

Laws Governing Labor-Management Relations

Employment Discrimination

Environmental Law

Rules Governing the Issuance and Trading of Securities

Antitrust Laws

Laws of Debtor-Creditor Relations and Consumer Protection

Filters